1. The current ratio for Dana Dairy Products in 2019 was___________. See included document.

a. 1.10

b. 0.63

c. 0.91

d. 1.58

2. Acording to your answer to the prior question and the included data related to Dana Dairy Products, since 2018, the liquidity of Dana Dairy Products_________.

a. has deteriorate

b. has improved

c. cannot be determined

d. remained the same

3. The inventory turnover for Dana Dairy Products in 2019 was__________.

a. 43

b. 25

c. 5

d. 20

4. The inventory management at Dana Dairy Products ________ since 2018.

a. has improved slightly

b. remained the same

c. has deteriorated

d. cannot be determined

5. The average collection period for Dana Dairy Products in 2019 was________. See included data.

a. 25.3 days.

b. 32.5 days.

c. 35.9 days.

d. 11.8 days.

6. If Dana Dairy Products has credit terms which specify that accounts receivable should be paid in 25 days, the average collection period ________ since 2018.

a. has improved

b. has deteriorated

c. remained the same

d. cannot be determined

7. Dana Dairy Products had a __________ degree of Financial leverage than the standard, resulting in_________.

a. lower; lower return on equity

b. lower; lower return on total assets

c. higher; higher return on equity

d. higher; higher return on total assets

8. The debt ratio for Dana Dairy Products in 2019 was _________.

a. 50 percent

b. 44 percent

c. 11 percent

d. 55 percent

9. Dana Dairy Products gross profit margin was inferior to the Industry standard. This Way have resulted from________.

a. the high cost of goods sold

b. excessive interest expense

c. a high sale price

d. excessive selling and administrative expense

10. The gross profit margin and net profit fmargin or Dana Dairy Products in 2019 were_______. See Table 3.2

a. 13 percent and 0.9 percent, respectively

b. 13 percent and 1.5 percent, respectively

c. 2 percent and 0.9 percent, respectively

d. 2 percent and 1.5 percent, respectively

11. The return on total assets for Dana Dairy Products for 2019 was_______. See table 3.2

a. 5.5 percent

b. 0.9 percent

c. 25 percent

d. 2.5 percent

12. The return on equity for Dana Dairy Products for 2019 was ________. See table 3.2

a. 50 percent

b. 0.9 percent

c. 0.6 percent

d. 5.6 percent

Dana Dairy Products Key Ratios Industry Actual Actual Average 2012 2013 Current ratio 1.3 1.0 Quick ratio 0.8 0.75 Average collection period 23 days 30 days Inventory turnover 21.7 19 Debt ratio 64.7% 50% Times interest earned 4.8 5.5 Gross profit margin 136 12.0" Net profit margin 1.0% 0.5 Retum on total assets 2.9 2.09. Retum onequity 8.2 Income Statement Dana Dairy Products For the Year Ended December 31, 2013 Sales revenue $100,000 Less: Cost of goods sold 87,000 Gross profits $ 13,000 Less: Operating expenses 11.000 Operating profits $ 2,000 Less Interest expense 500 Net profits before taxes $ 1,500 Less: Taxes (40%) 600 Net profits after taxes $ Balance Sheet Dana Dairy Products December 31, 2013 900 Assets $1,00 8900 4350 $14,250 Accounts receivable Inventories Total current assets Grossfixed assets Less Accumulated depreciation Netfixed assets Total assets $35.400 13.250 21.750 SAXO $ 9,000 565 Liabilities & Stockholders' Equity Accounts payable Acords Total current liabilities Long-term debt Total liabilities Common stod Retained earnings Total stockholders equity Total liabilities & stockholders equity $15.45 4,125 $19.00 1,000 15200 $16.2X1 $300